In its latest report, JPMorgan discusses Square’s $50 million investment in the world’s leading digital asset Bitcoin. Square has trusted Bitcoin after seeing “a lot of potential” in cryptocurrency, say JPMorgan’s analysts.
More Investment is Expected
Recently, payment firm Square announced its plan to invest $50 million in the top digital asset. Square’s interest in cryptocurrency is largely welcomed by the crypto community as well as prominent crypto-related companies. Analysts at JPMorgan stated in the report that the payment company can increase its crypto holding by purchasing more Bitcoin.
Before Square, MicroStrategy entered into the crypto space after investing $425 million in Bitcoin. With the entry of big investors and institution actors, the crypto industry can see a boom in the future. The price of Bitcoin may witness a new high in the coming months. The demand for Bitcoin supply has surged in Q3 as compared to Q2, especially after MicroStrategy’s purchase of Bitcoin.
Jack Dorsey-led payment company has also offered an outstanding facility for users in the form of Cash App. Cash App’s users can easily buy the world’s leading cryptocurrency.
Bitcoin: A Store of Value
JPMorgan’s report stated other investment companies may add Bitcoin in their portfolios. This is because central banks are busy adding more and more cash in the markets, and Bitcoin can prove as the best store of value in an uncertain financial state. Due to Bitcoin’s fixed supply, 21 million, a unique feature to get control over devaluation. On the other hand, fiat currency is susceptible to devaluation as a result of central banks’ policies.
As the institutional influx in the world’s top digital currency is increasing over recent months, a clear surge has been witnessed in BTC contract options over cryptocurrency exchanges, such as Chicago Mercantile Exchange (CME).
In the last couple of days, cryptocurrency markets booked a lot of profit as a result of buyers’ entry. Bitcoin reached a five-week high position of $11,740.
Recently, Jamie Dimon, the chief executive of JPMorgan, stated that Bitcoin’s adoption has seen exponential growth to due the US government.